The value of works of the construction industry, the largest consumer of steel in Mexico, registered a new historical record for the fourth consecutive month in August with MXN 63.16 billion ($3.40 billion), according to the SteelOrbis analysis of data from the national statistics agency Inegi.
The value of construction works in August represented a nominal increase (without adjustment to eliminate inflation) of 48.0 percent, compared to August of last year, the thirtieth consecutive annual increase since March 2021.
The four new historical records contrast with the consumption of rebar, wire rod and wire. In the May-August period, the value of construction works increased 34.2 percent, compared to the same period last year. In that same period, the volume of rebar consumption increased 6.7 percent and the consumption of wire rod and wire decreased 3.3 percent and 15.1 percent, respectively, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero).
Of the 32 states of the country, the value of the works increased in 26, of which Quintana Roo stood out with an increase of 869 percent and Campeche with an increase of 315 percent. Those 26 states contribute 84.7 percent of the total value.
In contrast, in six states it decreased. Tabasco stood out with a reduction of 49.8 percent and Morelos with a drop of 41.6 percent. Meanwhile, Mexico City, Zacatecas and Tlaxcala the drop was around 20 percent. These six entities contribute 15.3 percent of the total value for August.
The accumulated value in the January-July period of construction is MXN 412 billion ($22.18 billion).
In the accumulated period until August, the five largest construction economies in the country are Mexico City (5.7 percent), Campeche (6.7 percent), Jalisco (7.1 percent), Nuevo León (7.9 percent) and Quintana Roo (9.0 percent of the national total). Together they contribute 36.4 percent of the total.
The construction industry contributes 6.0 percent of Mexico's total GDP ($1.59 trillion). SteelOrbis recently published a report from Canacero that shows that 54.5 percent of steel consumption in Mexico is carried out in activities related to the private and public construction industry with civil engineering works, building (residential and non-residential) that consume wire, rod, commercial profiles, beams, nails, wire rod, sheet, plate, structural profiles, tubes among other finished steel products.